Which of the following is a recommended measure for preventing check fraud?

Implementing positive pay is an effective measure for preventing check fraud, as it involves a service provided by banks which allows businesses to protect themselves against unauthorized check payments. With positive pay, a company sends a list of checks they have issued to the bank, including the check numbers, amounts, and dates. When checks are presented for payment, the bank verifies each check against this list. If a check that is presented does not match the details provided, the bank will alert the company, or potentially refuse payment. This proactive approach significantly reduces the risk of fraudulent or altered checks being processed, thus enhancing the security of the payment process.

Other strategies, such as conducting all payments at the end of the month or ignoring bank statement reconciliations, do not address the risks associated with fraud. Conducting payments at month-end can lead to backlog issues and does not inherently provide a layer of security against fraud. Ignoring bank reconciliations would result in a lack of oversight over the financial transactions and increase susceptibility to fraud, as discrepancies would go unnoticed. Additionally, allowing no segregation of duties compromises internal controls, making it easier for fraudulent activity to occur without detection. Positive pay, on the other hand, establishes a robust safeguard against unauthorized disbursements, ensuring